Analysis of Returns and Determination of Selling Prices for Herbal Vegetable Cracker Production of the Ban Bayao Community Enterprise, Village No. 6, Nong Bua Subdistrict, Ban Fang District, Khon Kaen Province

Abstract

The research objectives were to study returns and break-even point and to determine the selling price of herbal vegetable crackers products. The sample group were 16 members from the Ban Bayao community enterprise, Village No. 6, Nong Bua Subdistrict, Ban Fang District, Khon Kaen Province. The instruments were structured interview questionnaires. The data were analyzed through accounting formulas. The research results found that the total production cost per kilogram equally 155.44 baht, direct raw material was 43.76 baht, direct labor costs 100 baht and production overhead was 11.68 baht. The break-even sales volume was 46.80 kilograms, administrative and selling was 0.31 baht, the total cost was 155.75 baht, therefore the break-even selling price was 156 baht per kilogram. The rate of return on production costs was 79.48 percent and gross profit ratio to selling price was 44.28 percent. When determining the selling price, the appropriate price must not be less than 156 baht which determined by considering all costs and adding the desired profit. For example, if you require 50 % of profit, the appropriate selling price could be 234 baht, or if you require 90 % of profit, the appropriate selling price could be 295 baht.